Transcript Chartered Institute of Marketing

BA (Hons) Business, Management
& Communications
Managing Marketing
Activities
Week 4
Objectives for today
By the end of this session we will have …
• Critiqued the purchasing process used by individual
consumers and organisations
• Compared the buying behaviour of different types and
sizes of businesses
Re-cap
• Extended Marketing Mix
• Product, Price, Place, Promotion, People, Processes, Physical
Evidence
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Five main components of the Mix (according to B&P)
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing
New Media Tools
Text messaging, Mobile Entertainment, eCommerce, QR codes, Viral
marketing
Marketing Communications – new
challenges and future trends
www.108thstreet.co.uk
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Shift towards 2-way conversations: the receiver = source
Marketers are no longer in control of their own brands
Customers generate their own content anywhere, 24/7
Mobile technology is changing constantly
Not all social media platforms will survive; networking will
But brands can (and do) make money from social media
There are cultural differences on use of social media
Old media will not disappear (eg emphasis on video, tvod)
Growth areas – personalisation; localisation; ‘dwell-time’
Blurring roles between customer service and marcoms
https://www.youtube.com/watch?v=heSudg-tfIk
Different individuals and
organisations
use different buying decisionmaking processes for different
products or services
• Consumers buying food, clothes or expensive technology items
• Business-to-business sales of high priced equipment, plant or
machinery
• Purchase of services – by individuals or by organisations
• Charity donations or voluntary activities
• Internet shopping – impulsive or deliberate
Influencing the purchase of
consumer goods
Durable goods
FMCGs
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• Advertising, branding and
packaging
• Personal factors (age,
gender, income etc)
• Psychological factors
(motives, attitudes)
• Social and cultural factors
(family influence, peer
groups)
Changing technology
New features
Fashion
Worn out existing items
Keeping up with the
neighbours
Shopping Bags
• 3 Groups
• Describe the consumer that purchases from each place
• How fast is the decision making process from each?
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As one group
Split the bags into bargain, middle and high quality
Which pile would/do you buy from?
Why?
Factors Affecting Consumer Behaviour
(B&P Chpt 3; Blythe p58 )
• Social factors – family, status, ref groups
• Cultural factors – culture and social class
• Personal factors – age, occupation,
lifestyle
• Psychological factors – motivation,
perception, learning, beliefs and attitudes
All combine to influence the buyer
McDonalds – target market?
• https://www.youtube.com/watch?v=PYCrQlhWCu
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• https://www.youtube.com/watch?v=YYRlBRQ8u40
• https://www.youtube.com/watch?v=1K7FtpUv1RM
• https://www.youtube.com/watch?v=ZT86ffTV5Uw
• Do you relate to any of the adverts? Have they
influenced you in the past?
Are we in control of our wants
and needs?
• https://www.youtube.com/watch?v=0SR
RCKLUE6g&list=PL63FBF870F2102C9
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The consumer’s purchase
decision-making process
Cognitive bias – “Thinking, Fast
and Slow” Kahneman, 2012
According to theories of psychology humans make two
kinds of decisions – intuitive and logical – or System 1 and
System 2 – Fast decisions are easier than Slow ones
Daniel Kahneman’s research findings showed that it is not
just everyday decisions that follow this pattern – often very
significant financial decisions are taken in a System 1 way
He called these errors of judgement “systematic mistakes”
and his theory has led to the discovery of a large number
of ‘cognitive biases’ – which could be manipulated by
marketers to persuade consumers to buy some products
or services without reasoning - eg: financial risk products
Decision making process in B2B
market [B&P, Chpt 4; Blythe, p65]
• In pairs discuss how B2B purchasing
decisions are taken within
1) Global enterprises (5,000+ employees
2) Large organisations (500+ employees)
3) Medium sized organisations (50+)
4) Small organisations (5+)
5) Micro-businesses (one-two person
owned)
Decision Making Unit
(in businesses)
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Initiator – manager with a problem to solve
Influencer – technical staff who suggest ...
Deciders – committee who advise the Board
Approver – senior Finance staff (budget ok)
Buyer – key role in selecting supplier
Gatekeeper – H&S officer, legal advisers
Users – operators on the production line
Live marketing project assessment requirement
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Assess market opportunities
Select appropriate options to pursue
Create a target market strategy
Create a “brand position”
Develop a marketing plan
All within the overall task:
Undertake a marketing project that seeks to rebrand
and reposition port and sherry in the market place
What we did today
• Critiqued the purchasing process used by individual
consumers and organisations
• Compared the buying behaviour of different types
and sizes of businesses
• Homework – get started on assignment 1 if you
haven’t done so already